Just been frauded!!

someone came on to my site and order 3 items. all good items so the person who ordered them kew what he wanted.

they checkedout using a solo card. My checkout modual is protx. Everthing matched the card, address, cv2, etc etc

He wanted the item posting to a different address which is about 1 mile from the billing address. We have emails from the customer askin for tracker numbers, and delivery estimaion etc, we delivered the items, all sigend for with proof of postage. job done...............

until

2 weeks later we have just had a letter from our bank saying the card was fraud and that the money has been returned to the card holder! so thats £350 we are down :censored:

anyone have any advice??

we are rining protx today and the bank and my solicitor today to ee where we stand!

Use 3D secure is your answer.

With the close proximity of the delivery address to the registered address there are a number of things that could have happened. The most likely is the fraudster knew the card holder.

A common thing we are seeing in the UK nowadays is proximity fraud . Usually there are a number of people involved. How it works is the legitimate card holder gives either the card details or the card itself to the person who will enact the fraud. That person then buys a number of items online. Next day the cardholder reports the card stolen. Goods are usually delivered by a signed for courier where they can get hold of tracking numbers. The fraudster then sits outside the address and waits for the delivery van. As it approaches and te delivery person gets out the fraudster will get out of their car and feign "Oh is that for 32b?". Driver hands it over, signature seems valid. Job done. They have your goods and the card holder will have their money back.

Your only protection for this type of fraud is 3D secure.

3D secure secure only works on mastercard and visa not solo and switch

kitcorsa:

3D secure secure only works on mastercard and visa not solo and switch

There is a very good reason that 3D secure does not work on Switch & Solo. For one Solo does not exist anymore, its Maestro. And secondly both are debit cards.

You may actually come across switch and solo cards on reporting and in some cases still in circulation. These are long issue cards that have not been replaced with the Meastro cards but they are still technically Maestro.

Debit cards also do not fall under the consumer credit act and are therefor not protected under the card scheme charge back schemes.

Thats why I always recommend that you use a credit card for online purchases.

Sorry I should have been a bit more clear. How 3D secure works is that as a merchant in order for you to get the liability shift you MUST attempt 3D authentication. This is where your system checks with the Card Scheme ACH to see if the card is enrolled. If you check and the card is not enrolled the liability is shifted away from you regardless if the card, in the case a debit card, is enrolled in the program.

If you had attempted a 3D auth you would have been able to contest the funds being taken as it is the card issuers responsibility to enroll the cards they issue and it is not your fault if you are using the program and they have failed to comply.

Subtle difference but its there.

Firstly, it was "Switch" that no longer exists, as it became Maestro.

Secondly, to switch liability to the Bank 3D Secure must be completed and approved and not just attempted. If the card has passed 3D Secure authentiation then the liability for any chargebacks does shift to the Bank. They will still try to chargeback against your acount, but you can refuse to allow them to do that.

Having said that - be very careful of refusing chargebacks asked for by the Bank. It may seem the quick and easy thing to do, and you may smile thinking it's now the Banks' problem and not yours. But the Banks don't like that and you may find yourself on their "high risk" list and then life can become very difficult for you. The Banks will get their money one way or another - that's what they're in business for.

Vger

Firstly it was a SOLO card not switch or mestro etc it was an old SOLO card. Even if it was Switch or its new name mestro 3D secure ONLY works on VISA and MASTER CARD not Mestro or Switch or Solo

http://techsupport.protx.com/threedsecure.asp

so 3D secure doesn't help.

Vger:

Firstly, it was "Switch" that no longer exists, as it became Maestro.

Secondly, to switch liability to the Bank 3D Secure must be completed and approved and not just attempted. If the card has passed 3D Secure authentiation then the liability for any chargebacks does shift to the Bank. They will still try to chargeback against your acount, but you can refuse to allow them to do that.

Having said that - be very careful of refusing chargebacks asked for by the Bank. It may seem the quick and easy thing to do, and you may smile thinking it's now the Banks' problem and not yours. But the Banks don't like that and you may find yourself on their "high risk" list and then life can become very difficult for you. The Banks will get their money one way or another - that's what they're in business for.

Vger

We use worldpay and our signed up to the verified by visa / secured by mastercard system.

http://www.worldpay.com/support/kb/mergedProjects/authentication/auth1010.html

Once the retailer ATTEMPTS authorisation Mastercard and Visa subsequently take the liabillity for fraudulent purchases. If the cardholder declines to the invitation to sign up to authentication etc but the issuing bank still allows the transaction to proceed then the retailer is completely protected from chargebacks.

Obviously the onus is also on the retailer to be vigilant. We've stopped quite a few orders going out that even if they had of gone out we would have been covered on but it just looked too dodgy. Play fair with the banks and they will play fair with you.

PS We also have a concrete and clear policy with our carriers that they cannot under any circumstances hand over the package to anyone other than the house owner standing in their own house ( ie not meeting in the garden etc ) This would be advisable for you too.

IridiumCorpSupport:

A common thing we are seeing in the UK nowadays is proximity fraud .

Interesting - I think this is what we are being hit with a lot at the moment, it is making us turn away legitimate business as we are so cautious.

AVS is an exact match, CVV correct, name on card matches delivery name, and delivery address matches the billing address - but the yahoo email address, lack of land phone line and mobile broadband (or dedicated server in a datacentre) being used to place the order flags caution with us.

I actually contacted one of the 'customers' and asked them for a land line number to call them on? - I don't have a land line number... (in a strong African accent) Then how are you using a BT broadband line to place an order with us? - no answer to that question.. Enough said - cancelled order.

Another 'customer' called Darren.. Phoned and asked to speak to Tim... Speaking he said... Sorry I said, I meant Darren.. Speaking he said... That answered my question - order cancelled.

Shouldn't the couriers be responsible for this - they should not accept deliveries in the street - full stop.

If you log ip addresses of visitors then check the ip address at https://www.dnsstuff.com, and if the address says UK but the IP address says somewhere in Africa, the Middle East or ex-Soviet Bloc then it's a fair bet it's fraudulent.

Vger

IP Addresses tend to be from Germany, Mobile (3G Broadband) or dedicated servers at datacentres like fasthosts..